THE UNIVERSITY OF TENNESSEE
HUMAN RESOURCES PROCEDURE
Subject: Overtime Compensation
Revision (3): 07/01/2015
The supervisor must determine whether a non-exempt employee’s overtime is to be compensated by means of pay or by means of compensatory time off.
If a bi-weekly employee is to be compensated with overtime payment, the actual number of hours worked must be noted on the bi-weekly time report. Completion of the time report is all that is needed to compensate with overtime pay. If compensatory time off is used as the method of overtime compensation, the time report should so indicate.
If a monthly-paid non-exempt employee is to be paid for overtime, a Monthly Time Report indicating time worked must be submitted to Payroll. Payment is made to the employee on the following month’s payroll check. If compensatory time off is used as the method of overtime compensation, the time report for the pay period in which the compensatory time is taken should so indicate.
The subject policy should be consulted for guidance on the matter of when the compensatory time off should be given. For a bi-weekly paid staff non-exempt employee the compensatory time off must be granted within the same pay period. For a monthly-paid staff non-exempt employee the compensatory time off must be granted prior to the end of the month following the month in which the overtime work is incurred.